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Years Gone by, RBI Makes no Improvement in Capacity Utilization
October 10, 2017
The Reserve Bank of India’s Order Books, Inventories and Capacity Utilisation Survey, which reflects the demand situation in the manufacturing industry, shows that there was only 71.2% capacity utilization during the first quarter of the current fiscal year i.e. June end. Not only is this percentage slightly below than the one recorded last year for the same quarter, it’s actually the lowest compared to June 2014 quarter and June 2013 quarter.
In the last four years, the capacity utilization hasn’t increased at all in the manufacturing sector, which puts investment demand in the industry in a risky situation.
